CBRE arranges $320m sale
CBRE Capital Markets has arranged the $320.5 million sale and recapitalization of Milhaus’s Urban Core Portfolio, a nine-property multifamily portfolio located in Indianapolis, Memphis, Oklahoma City and Cincinnati.
“The portfolio consists of small and large assets in four distinct metros, but the common theme the capital recognized is that each of these markets have expanding employment bases of young talent with plenty of runway left in this cycle,” said Steve LaMotte, Jr., senior vice president, in CBRE’s Indianapolis office. “The rare opportunity to deploy a sizeable amount of capital in newly constructed, best-of-class, urban-walkable assets was duly noted by the market.”
Properties located in Indianapolis total 989 units over six properties; Memphis, 354 units for one property; Cincinnati, 131 units for one property; and Oklahoma City, 329 units for one property.
CBRE’s Indianapolis office and the Central Midwest Multifamily team represented the developer, Milhaus, an Indianapolis-based development, construction and property management company formed in 2010. The locally based Gene B. Glick Company was the seller of one of the assets. The properties were acquired or recapitalized by four separate groups.
As part of the transaction, five assets were recapitalized by a newly formed joint venture between StepStone Group Real Estate and Milhaus. Separately, FrontRange Capital Partners made a platform-level investment in Milhaus that helped facilitate the recapitalization. This structure will allow Milhaus to reach its goal of operating 20,000 units by 2020, as well as retaining long-term ownership and management of assets the firm develops.
The majority of the portfolio was developed, constructed and managed by Milhaus, which focuses on class A, urban, multifamily residential buildings in growing secondary markets in the eastern half of the United States.
